Keeping an eye on banks

Until now banks have not complied with the requirements of the Obama administration to help people who have faced foreclosure, so now California is taking steps to enforce the law.

In order to help those who have lost their homes, Assemblyman Pedro Nava, D-Santa Barbara, last week introduced proposal AB 1639, by which the government seeks to monitor state banks and make sure they fulfill their task of helping people.

"This legislation sends a strong message to the banking and mortgage industry that, as usual are not doing the right thing to help people," Nava said in a press conference.

He added that this initiative will force the banks to do more to help struggling families facing foreclosure in California.

"This legislation will require face to face meetings between the owners and their lenders to create a plan acceptable to both parties. With this we want families to remain within their home," said Nava.

In the last few weeks Nava has conducted a series of hearings throughout the state to find out more information about the foreclosure crisis and the modification programs in order to improve the procedures and understanding between homeowners and banks.

This initiative has already received strong opposition from financial institutions in the state like California Bankers Association, California Building Industry Association, the Chabers of Commerce, and California Mortgage Bankers Association, among others.

However, it was well-received by the assembly.